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Goods Issue to Production Order or Process order

 
 

Goods Issue to Production Order or Process order

 
Goods Issue to Production Order or Process order
 
 
So as to produce a production order quantity or a process order quantity, you need to issue components in a quantity proposed in the order component list or as proposed in the reservation list.
 
The issue of components can happen from the Warehouse or from the storage location near the Shop floor itself.
 
A Production order component list is shown below. The reservation list is a replica of the component list in the order component overview.  
 
 
 
 
 
 
 
Reservation List:
 
 
Once you create an order, the system creates a reservation list as shown below. You can access the reservation list from the order itself or you can access through the transaction code MB23.
 
The Reservation list created from an order is not editable.
 
 
MB23 Initial Screen:
 
 
 
 
 
MB23 - Reservation List is seen as below, when you enter the reservation number in the selection screen and press enter.
 
 
 
 
 
Note -
 
 
1) The reservation list contains all the components that are requried to be issued to the order and it also contains the by-product material which is to be received from the order.
 
 
2) The Reservation list is a replica of the component list of the order. If you have entered the batch number in the order, the system mandatorly tries to issue this component-batch to the order from the designated storage location. On the other hand, if you have enetred a batch number for the by-product material, the system would mandatorly receive the by-product from the order with this batch number.
 
3) If you have not entered any Batch number or storage location in the Order, the system allows you to enter the same during good issues.
 
 
 
Steps in Order Goods issue:
 
 
 
Step 1: Selection Screen 
 
 
The tranasction code used to issue materials to the order is MB1A through movement type 261 or you can alternatively use transaction code MIGO through the use of the same movement type 261.
 
On the selection screen, you should enter the plant, the movement type. Entering the storage location is optional. Entering a storage location here would default the storage location ID in all the goods issue that would make.
 
 
Remember once you have entered the selection screen values, you should press "To order" or "To Reservation" button so that you can issue goods to the order and the system proposes all the components that are to be issued to the order (rather than you entering them manually in the order).  
 
 
When you press the "to order" or the "to reservations" option, a pop-up box appears that wants you to enter the order number or reservation number.
                                 à Then Press the enter button on the popup or press the "Adopt" Button
 
 
The Button - "Issue goods to the order" or "To- Reservation" will automatically propose all the components required from the reservation list. In short the reservation list proposed in the goods issue screen helps you not only to issue the correct components in the correct required quantities as wished in the order, but also clear all the reservations once they are issued completely to the order.  
 
 
Note - If you forget to enter the movement type and directly press "to-order" or "to reservation" button, the system would automatically assume the movement type as "261"
 
 
Screen Shot explains the selection Screen:
 
Enter Plant, Movement type, SLOC à Press the "to order" or "to reservation" à Pop-up Box Appears  à Enter the order number or reservation number à Press Enter to go to Proposed Component List
 
 
 
 
 
Press the "To Order" or "To Reservation" Button so that the system proposes the Components and its details:
 
 
 
 
 
Pressing the enter button of the Popup in the step 1, will take you to a tabular arrangement that shows you the component, component quantity, unit of measure, plant and storgae location for each of the components that are to be issued to the order.
 
 
Pressing the "Adopt" Button of the popup in the step 1, will take you to the individual component details. To access the details of all the components, you have to press the Copy component button (declaring that the current component is correct and can be issued and the next component can be accessed) to see the details of the next component.
 
 
 
Step 2:  Goods issue item detail screen
 
 
 
What can be edited if you are "issuing to order" - If you are accessing the goods issue by pressing the "Issue to Order" then you can only edit the quantity that is to be issued to the order.
 
 
Screen Shot below: The first half of the screen shot shows the screen that you get after pressing enter button on the to-order or to-reservation pop-up & the next half of the screen shot shows the screen that you get after pressing "Adopt + Details" on the pop-up.
 
 
 
 
 
 
Step 3: Press the Save Button or the Post Button:
 
 
Pressing the save button or Post button the goods are issued to the order.
 
 
 
 
 
 
Step 4: Saving the Issue creates a Material Document
 
 
Pressing the save button or Post button the goods are issued to the order and a material document is created in the background. The material document contains the details of goods issue and it contains the accounting documents also. The accounting document contains the GL accounts that are hit.
 
The above screen shots gives you details of the material document generated at the bottom of the screen when you save the issues.
 
 
 
 
 
Unplanned Goods Issue to SAP Production order or Process order:
 
 
There can be cases in production where:
 
 
a) you may want to issue more than the reserved quantity of a certain component or
 
 
b) you may want to issue a completely new component (which can be a substitute for the original component or which may be completely new to the production) 
 
 
 
To carry out unplanned goods issue to the production order or process order, you should do the following:
 
 
a) Use transaction code MB1A and enter the movement type 261 and enter the plant code, you can also enter the storage location if you wish you.
 
 
b) Do not press the - "issue to order" button.
 
 
c) Instead you can press the "Enter" button or press the "New Item" Button.
 
 
d) By pressing the enter or the new item button, you are given a screen to enter the material number, the quantity, the storage location, and the unit of issue for each of the material you would want to issue to the order.
 
 
e) When you enter the "New item Button", you are given a screen to enter a single component with quantity that you may want to issue, but if you have multiple unplanned components to be issued to the order, you should press the "New item Button" again to enter the details for the next component. But if you press enter, then you are given a screen to enter details for multiple components.
 
 
f) Pressing the save button or the post button will create a material document that contains the goods issue details and the accounting documents. The accounting document contains the GL accounts that are hit.
 
 
 
Explaining Unplanned Goods issue through the following screen shots laied one below the other:
 
 
Once you press enter on the selection screen after entering the movement type, the plant and the storage location details (if requried) you should press the enter button, to come in to the screen 1 as shown below. Here you would be asked to enter the component number, qty, storage location, batch number. From this screen, if you are satisfied with the details that you have entered then you can press the "SAVE" button to post the document.
 
Screen 2 appears if you have forgotten to enter any details in the first screen or you have pressed "new item" in the goods issue selection screen instead of pressing the enter button. This screen can also be seen by pressing the "Magnifying glass". If you are satisfied with the details that you have entered then you can press the "SAVE" button to post the document.
 
Screen 3 appears if you press the "Detail Button" which looks like a "Triangle with a full stop on the top of it". Here you cannot modify any details, but you can press the "SAVE" button to post the document. Once you post the document, system generates a material document number.
 
 
 
 
 
 
Viewing the Order for Goods Movement details:
 
 
Once you have made the Goods issues to the order, you can go back to the order in Order Display mode and check the goods issues made.
 
Path - Goto >>> Documented Goods movements (This can be accessed through order header or order component overview screens)
 
 
 
 
 
Note - You can also view the goods movements for order through the transaction code COOIS/COID for Production orders and COOISPI for Process orders.
 
 
 
 
Good issue through MIGO Screen
 
 
Goods issues can also be made using MIGO screen. The MIGO screen is supposedly created to replace the MB1A screen in the long run.
 
Here you should select the A07 - Goods issue Option, R08 - Order Option, and enter the order number in the next box. Once you select A07 - Goods issues the system will automatically prompt the movement type 261.
 
You should press the execute button next to the order number or press F8. When you do this, the system will pull in all the component details that are required to be issued to the order. In short the system would propose the components, the quantities, the storage locations and the batches (if it is batch managed material).
 
The next step is to "select the items" that are to be issued and press the "check button" to check for any errors or warnings and then press the "Post button" next to the check button. You could alternatively press the Post button directly.
 
Note - You can also press the save button to post the document. This button can be pressed at any time to post the document. The system will generate the material document number once you save/post the goods issues.
 
 
Example - In our example, we have already issued RM1, RM2, RM3 to the order 1010082, if there was any other component left for issues we could have issued that through MIGO. But we are unfortunately left with only one item in the component overview screen and that is a by-product receipt (see below).
 
                >>> Then the next question is, why do we see the by-product component in the MIGO screen since we have issued all the components.
 
                >>> The answer is that, SAP has a procedure to receive the byproduct as a "goods issue to order" from the goods issue screens. Therefore if you run MIGO now for the order, you would osee ne item left in the goods issue screen and that is the byproduct item which is waiting for receipt through movement type 531.
 
 
 
Yes Sometimes SAP is Confusing - The By-product is also included for receipts in the MB1A-261 or the MIGO-261 goods issue screens. Though the byproduct is not an issue, but it is a receipt, SAP includes this for receipt from the goods issue screens.
 
 
 
 
 
MIGO Screen Details:
 
MIGO goods issue screen contains the document date on which the document is created and the posting date on which posting is to be made.
 
In the item details section, it contains the Line item, material number, Quantity, Storage location, the batch number and the movement type that is being used to receive line item (in our example we are receiving a by-product which is always received using a goods issue screen).
 
The "Detail button" at the bottom of the screen gives the details of each and every item you select. For selecting the item press the Line item number which is the first column.
 
 
 
 
By-Product Receipts using MB1a - 261: 
 
 
We have seen how to create Goods issue to order using MIGO screen and Regular MB1A screens through movement type 261. We have also seen how to create by-product GR from an order using MIGO screen. Now we will see how to receive by-products receipts using the conventional MB1A-261. This method is similar to the goods issue to order procedure, except for the following changes that you have to make.
 
 
To receive by-products using MB1a-261, you should press the "To-Order" button or the "To-Reservations" button and proceed as if you are making a regular goods issue to order. The only thing that you would have to remember is that, you should enter the order number or the reservation number in the pop-up and specify in a field a value called "by-products" or "take by-products in to account".
 
 
What Values to select in by-product field - If you just want to post by-products receipts and want the system to propose the same, then enter "2" and if you want both issues and by-product receipts to be made then select "1" in the box.
 
 
 
 
 
 
 
 
Good issue Reversals:
 
 
 
SAP provides a facility to reverse the wrong goods issues that you have made. Infact all the goods movements in SAP - goods issue, goods transfer or goods receipts have a reversal feature.
 
In the case of a Goods issue to order, made using movement type 261, there is a reversal movement available called 262. You can use the transaction code MB1a-262 or use MIGO-262 to create the reversals.
 
Alternatively you can use the transaction code MBST (or use MIGO - Document Cancellation option) to create the reversals, using MBST not only saves your time, but it also creates a chance to know the original reference document that was reversed.
 
If you use the MB1a-262 or MIGO-262, you would not know the material document or the document item that you are cancelling (due to incorrect issues) and the system would not propose the reversal details for you. You would have to manually type in the details that you wish to reverse.
 
 
Options                                                
Details                                                   
Details                                                  
Details   
Reversals using MB1a- 262 or MIGO - 262                                 
Use this option when you want to create partial quantity reversal for an item issued.  
The System will not propose any reversal details for you. You would have to manually type in the component, qty, sloc, and the batch number (if any) that you wish to reverse from the order.
 
The system does not have any chance to record the original material document details as nothing is provided to the system during the reversals.                                                 
Reversals using MBST
You can use this option if you want to reverse/cancel the whole document that was posted as goods issue
There is not much of effort required as you would be cancelling an existing document, that has its own details.
 
Since you are cancelling an existing document, the system records the original document as reference document in SAP tables such as MIGO. This is a clear advantage over the goods issue reversals process.
 
 
The Screen shot below explains the Goods issues cancellation process. While the goods issue reversal process is same as the goods issue process, where you would have to enter the movement type as 262 instead of 261.
 
 
 
 
Importance of Posting Date - You should enter the right posting date during cancellation/reversals or during the actual posting as the movement or production activities is booked on the date you select as posting date.If you have made a issue posting on 25th Dec 2010, then you should reverse using the same day, therefore helping the system to show the correct goods issue made on 25th Dec 2010. But if you issue on 25th Dec 2010 and reverse the document on 26th Dec 2010, it could be confusing for you to report the goods issues (it would show more issues on 25th Dec 2010 and reduce the issues made on 26th Dec 2010). So be Careful :)
 
 

Other Notes on Goods Issues

 
Goods issue and Costing
 
 
When you create a goods issue of components through the pick-list or through the Goods issue transaction codes, you are actually issuing goods required for production, which hold significant value. At goods issues to the order, the Moving average price of the product  (from Material Master price per unit) is registered as the price of the component for a unit mentioned. Thus for a given quantity issued to the order, SAP calculates the total cost of the component issued to the order and assigns that cost as the cost of raw materials. This is done for all the components issued to the order.
 
When the order is created in SAP, the system calculates the planned cost of the production for the raw material consumption, using the moving average price for the component, set in material master. SAP Understand the planned components and their quantities from the reservation list created for the production of the order.
 
Similarly when the actual goods issues are created for the order with the actual quantities, the system again calculates the actual cost of production using the moving average price for the component, set in material master. SAP Understand the actual goods issues from the order goods issue tables such as AUFM.
 
SAP would eventually add the material cost, the activity cost, the overheads (if any), to arrive at the total cost of production. This is carried out for the planned as well as the actuals and the difference in value between the planned values for material cost and the activity cost, the overheads is tranferred to a price difference account. This is carried out for all the orders on the shop floor. These costs are eventually settled on the material account.
 
 
For Example:
 
 
Deriving Planned Raw Material cost:
 
Thus if you three components planned for issue to the order with the quantities shown below, the planned cost would be:
 
C1 = Planned Qty -100 Units (Per Unit price = $2)  = Planned Cost = $200
C2 = Planned Qty -50 Units (Per Unit price = $0.5) = Planned Cost = $25
C3 = Planned Qty -200 Units (Per Unit price = $1)  = Planned Cost = $200
 
The Total Planned cost of Raw Material = $200 + $25+ $200 = $425
 
 
Deriving Actual Raw Material cost:
 
The actual cost of production is derived from the actual issues of raw material as shown below, with the actual costs:
 
C1 = Actual Qty -110 Units (Per Unit price = $2)  = Actual Cost = $220
C2 = Actual Qty -60 Units (Per Unit price = $0.5) = Actual  Cost = $30
C3 = Actual Qty -200 Units (Per Unit price = $1)  = Actual Cost = $200
 
The Total Actual cost of Raw Material = $220 + $30+ $200 = $450